Xbox One price cut to be introduced ‘faster than forecast’

An Xbox One price cut will be introduced ‘faster than forecast’ as Microsoft looks to compete with the rival PS4, industry analysts have predicted.

Although no Xbox One price cut is expected in the immediate future, it has been suggested that the Redmond-based manufacturer will be forced into reducing the price of its next-gen console sooner than planned in order not to lost ground in the gaming wars.

“It is possible that Microsoft will reduce Xbox One pricing far faster than we have forecasted,” industry analyst Michael Pachter of investment firm Wedbush Morgan said in a note to clients.

Stating that a price cut could help gain traction in the hotly contested console market, Pachter stated: “We think ‘winning’ is important to both companies.”

He added: “Should hardware prices come down faster than we have modelled, it is likely that hardware and software sales will grow faster.”

While Pachter has failed to offer any detail on when this ‘faster than forecast’ price cut might be, he has suggested that by 2016 he believes the Xbox One will be $150 (£91) cheaper by 2016. By this time he also expects the PS4 to be $100 (£61).

Both the Xbox One and PS4 launched in the UK in November. While the PS4 price tag was set at a reasonably accessible £349, the Xbox One price is a full £80 more expensive at £429.

Although Pachter is a well-known industry analyst, his predictions haven’t always been on point. As such we recommend his claims of an Xbox One price cut be taken with a liberal pinch of salt.